§3724. Loan Guaranty Revolving Fund

(a) There is hereby established in the Treasury of the United States a revolving fund known as the Department of Veterans Affairs Loan Guaranty Revolving Fund (hereinafter called the Fund).

(b) The Fund shall be available to the Secretary when so provided in appropriation Acts and within such limitations as may be included in such Acts, without fiscal year limitation, for all housing loan guaranty and insurance operations under this chapter, except administrative expenses and the operations carried out in connection with the Guaranty and Indemnity Fund established by section 3725 of this title. For purposes of this subsection, the term "administrative expenses" shall not include expenses incurred by the Secretary for appraisals performed after February 1, 1986, on a contractual basis in connection with the liquidation of housing loans guaranteed, insured, or made under this chapter.

(c) There shall be deposited in the Fund (1) by transfer from current and future appropriations for readjustment benefits such amounts as may be necessary to supplement the Fund in order to meet the requirements of the Fund, (2) amounts received by the Secretary as fees collected under section 3729 of this title for loans closed before January 1, 1990, except that fees collected (A) for all loans made for any purpose specified in section 3712 of this title, or (B) under subsection (b) of such section 3729 for guaranteed or insured loans that are closed before January 1, 1990, and subsequently assumed shall also be deposited in the Fund, and (3) all amounts now held or hereafter received by the Secretary incident to housing loan guaranty and insurance operations under this chapter (other than operations for which the Guaranty and Indemnity Fund established under section 3725 of this title is available), including but not limited to all collections of principal and interest and the proceeds from the use of property held or the sale of property disposed of.

(d) The Secretary shall determine annually whether there has developed in such Fund a surplus which, in the Secretary's judgment, is more than necessary to meet the needs of the Fund, and such surplus, if any, shall immediately be transferred into the general fund receipts of the Treasury.

(e)(1) Notwithstanding subsection (b) of this section, the Fund shall be available to the Secretary, to such extent as is or in such amounts as are provided for in appropriation Acts and subject to paragraph (3) of this subsection, for-

(A) contracts for the performance of such supplementary services described in paragraph (2) of this subsection for which the Secretary is otherwise authorized to contract; and

(B) the acquisition of such supplementary equipment described in such paragraph,

(not including services or equipment for which the Fund is available under subsection (b) of this section), as the Secretary determines would assist in ensuring the long-term stability and solvency of the Fund.

(2) The supplementary services and equipment referred to in paragraph (1) of this subsection are services or equipment not performed or available during fiscal year 1988, or services in excess of the level of such services performed during fiscal year 1988, and may include, among other things, the services of-

(A) appraisers to review appraisal reports and issue certificates of reasonable value;

(B) loan-servicing companies and individuals to perform personal supplemental servicing of loans guaranteed, insured, or made under this chapter;

(C) accounting firms to conduct on-site audits of lenders making such loans and to review lender submissions regarding such loans;

(D) real estate brokers to promote the sale of real property acquired by the Secretary as the result of a default on a loan guaranteed, insured, or made under this chapter;

(E) contractors to review loan documents in order to achieve compliance with Department of Veterans Affairs requirements under this chapter and to issue guaranty certifications;

(F) contractors to list for sale in local newspapers real property acquired by the Secretary as the result of a default on a loan guaranteed, insured, or made under this chapter;

(G) contractors to prepare closing documents and review them after closing; and

(H) contractors to provide automated data processing equipment, supplies, services, and software for carrying out the program administered under this chapter.

(3) The Secretary may not in any fiscal year obligate more than a total of $25,000,000 for services or equipment under this subsection and section 3725(e) of this title.

(Added Pub. L. 86–665, §7(a), July 14, 1960, 74 Stat. 532 , §1824; amended Pub. L. 94–324, §7(28), June 30, 1976, 90 Stat. 722 ; Pub. L. 97–72, title III, §303(j), Nov. 3, 1981, 95 Stat. 1060 ; Pub. L. 98–369, div. B, title V, §2511(b), July 18, 1984, 98 Stat. 1117 ; Pub. L. 99–322, §2(a), May 23, 1986, 100 Stat. 494 ; Pub. L. 100–689, title III, §303, Nov. 18, 1988, 102 Stat. 4177 ; Pub. L. 101–237, title III, §§302(a)(2), (3)(A), (c), 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2070 , 2071, 2077; renumbered §3724 and amended Pub. L. 102–83, §5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406 .)

Amendments

1991-Pub. L. 102–83, §5(a), renumbered section 1824 of this title as this section.

Subsec. (b). Pub. L. 102–83, §5(c)(1), substituted "3725" for "1825".

Subsec. (c). Pub. L. 102–83, §5(c)(1), substituted "3729" for "1829" in two places, "3712" for "1812", and "3725" for "1825".

Subsec. (e)(3). Pub. L. 102–83, §5(c)(1), substituted "3725(e)" for "1825(e)".

1989-Pub. L. 101–237, §302(a)(3)(A), substituted "Loan Guaranty Revolving Fund" for "Loan guaranty revolving fund" in section catchline.

Subsec. (a). Pub. L. 101–237, §313(b)(2), substituted "Department of Veterans Affairs" for "Veterans' Administration".

Subsec. (b). Pub. L. 101–237, §313(b)(1), substituted "Secretary" for "Administrator" wherever appearing.

Pub. L. 101–237, §302(c)(1), inserted "and the operations carried out in connection with the Guaranty and Indemnity Fund established by section 1825 of this title" before period at end of first sentence.

Subsec. (c). Pub. L. 101–237, §313(b)(1), substituted "Secretary" for "Administrator" wherever appearing.

Pub. L. 101–237, §302(c)(2)(A), inserted "for loans closed before January 1, 1990, except that fees collected (A) for all loans made for any purpose specified in section 1812 of this title, or (B) under subsection (b) of such section 1829 for guaranteed or insured loans that are closed before January 1, 1990, and subsequently assumed shall also be deposited in the Fund" after "title" in cl. (2).

Pub. L. 101–237, §302(c)(2)(B), inserted "(other than operations for which the Guaranty and Indemnity Fund established under section 1825 of this title is available)" after "under this chapter" in cl. (3).

Subsecs. (d), (e). Pub. L. 101–237, §313(b)(1), (2), substituted "Secretary", "Secretary's", and "Department of Veterans Affairs" for "Administrator", "Administrator's", and "Veterans' Administration", respectively, wherever appearing.

Subsec. (e)(3). Pub. L. 101–237, §302(a)(2), inserted "a total of" before "$25,000,000" and "and section 1825(e) of this title" before period at end.

1988-Subsec. (e). Pub. L. 100–689 added subsec. (e).

1986-Subsec. (b). Pub. L. 99–322 inserted provision that "administrative expenses", for purposes of this subsection, not include expenses incurred by Administrator for appraisals performed after Feb. 1, 1986, on a contractual basis in connection with liquidation of housing loans guaranteed, insured, or made under this chapter.

1984-Subsec. (c). Pub. L. 98–369 substituted "(2) amounts received by the Administrator as fees collected under section 1829 of this title, and (3)" for "and (2)".

1981-Subsec. (b). Pub. L. 97–72, §303(j)(1), substituted "housing loan guaranty" for "loan guaranty".

Subsec. (c). Pub. L. 97–72, §303(j)(2), substituted "housing loan guaranty" for "loan guaranty".

1976-Subsec. (d). Pub. L. 94–324 substituted "the Administrator's" for "his".

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 applicable with respect to loans closed on or after July 18, 1984, see section 2511(c)(2) of Pub. L. 98–369, set out as a note under section 3729 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–72 effective at end of 180-day period beginning on Nov. 3, 1981, see section 305 of Pub. L. 97–72, set out as an Effective Date note under section 3741 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–324 effective June 30, 1976, see section 9(a) of Pub. L. 94–324, set out as a note under section 3701 of this title.

Effective Date

Section 7(c) of Pub. L. 86–665 provided that: "This section [enacting this section] shall become effective as of July 1, 1961."

Appraisal Expenses Not Considered Administrative Expenses; Use of Saving

Section 2(b) of Pub. L. 99–322 provided that: "Any saving in the General Operating Expenses Account of the Veterans' Administration that results from the implementation of the amendment made by subsection (a) [amending this section] shall be used by the Administrator of Veterans' Affairs for the purpose of administering the housing, compensation, pension, and education programs in title 38, United States Code, in a more timely manner."

Loan Guarantee Program; Report to Congressional Committees

Section 2512(e) of Pub. L. 98–369 directed Administrator of Veterans' Affairs, not later than Dec. 1, 1986, to submit to Committees on Veterans' Affairs of the Senate and House of Representatives a report on administration and functioning of loan guaranty program conducted by Veterans' Administration under this chapter and on status of Veterans' Administration Loan Guaranty Revolving Fund established under this section.

Section Referred to in Other Sections

This section is referred to in sections 2106, 3720, 3723, 3725, 3727, 3733 of this title.